Brand Extension

S.No
Contents
Page No.

1.
2.
3.
4.
5.
6.
7.
8.

INTRODUCTION………………………………………………………………...
IMPORTANCE AND NEED OF BRAND EXTENSION……………………...
ANSOFF’S GROWTH SHARE MATRIX……………………………………...
TYPES OF BRAND EXTENSION………………………………………………
ADVANTAGES & DISADVATAGES OF BRAND EXTENSION……………
EXAMPLES FROM CORPORATE…………………………………………….
CONCLUSION……………………………………………..................................
REFRENCES………………………………………………………………………

3
4
5
7
9
14
16
17

INTRODUCTION

Definition: Brand extension is a marketing strategy in which a firm marketing a product with a well-developed image uses the same brand name in a different product category. Brand extension is a part of brand management to diversify and leveraging the existing brand by entering into new product category by new product development.
There have been a number of brands that have used either a line (Diet Pepsi, Caffeine Free Diet Pepsi, etc) or brand extension (Ford and GM credit cards, Oral-B toothpaste, etc) to improve company wide sales and/or to enter new markets.
Organizations use this strategy to increase and leverage brand equity
Brand Equity:- Net worth and long-term sustainability just from the renowned name
A brand's "extendibility" depends on how strong consumer's associations are to the brand's values and goals. Ralph Lauren's Polo brand successfully extended from clothing to home furnishings such as bedding and towels. Both clothing and bedding are made of linen and fulfill a similar consumer function of comfort and hominess
For brand extension to be successful, there usually must be some logical association between the original product and the new one. A weak or nonexistent association can result in brand dilution. Also, if a brand extension is unsuccessful, it can harm the parent brand.
Brand characteristics
When a brand is being considered for extension into another product class (brand extension) or in the same product class (line